NEW YORK, May 28, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Virgin Galactic Holdings, Inc. (“Virgin Galactic” or the “Company”) (NYSE: SPCE) and certain of its officers. The class action, filed in United States District Court of the East District new York, and registered as 21-cv-03070, is in the name of a class consisting of all persons and entities other than the defendants who have purchased or otherwise acquired Virgin Galactic titles between October 26, 2019 and April 30, 2021, both dates inclusive (the “Recourse Period”), seeking to recover damages caused by defendants’ breaches of federal securities laws and to bring remedies under Articles 10 (b) and 20 (a ) of the Securities Exchange Act of 1934 (the “Exchange Act”) and rules 10b-5 promulgated hereunder, against the Company and certain of its senior officials.
If you are a shareholder who purchased Virgin Galactic securities during the Class Period, you have up to July 27, 2021 to ask the court to appoint you as the principal plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [emailÂ protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
Virgin Galactic is an integrated aerospace company that develops human spaceflight for individuals and researchers in the United States.
At October 25, 2019, post-market, Virgin Galactic was created through a business combination between Social Capital Hedosophia Holdings Corp. (“SCH”), a Special Purpose Acquisition Company (“SPAC”), and the then private predecessor of the Company, after which SCH changed its name to “Virgin Galactic Holdings, Inc.” and its ticker symbol âSPCEâ (the âbusiness combinationâ).
At April 12, 2021, the SEC issued guidance stating that SPAC warrants, which are instruments that allow investors to purchase additional shares at a fixed price, may need to be classified as liabilities rather than equity for many PSPC transactions, which were previously recognized in equity in these offers.
The complaint alleges that, throughout the period of the action, the defendants made materially false and misleading representations regarding the activities, operations and compliance policies of the company. Specifically, the defendants made false and / or misleading statements and / or failed to disclose that: (i) for accounting purposes, SCH warrants should be treated as liabilities rather than stocks; (ii) Virgin Galactic had weak disclosure controls and procedures and internal control over financial reporting; (iii) as a result, the Company incorrectly accounted for the SCH warrants that were outstanding at the time of the business combination; and (iv) therefore, the Company’s public statements were materially false and misleading at all material times.
At April 30, 3021, post-market, Virgin Galactic announced “that it has postponed the publication of its financial results for the first quarter of 2021 following the closure of the US markets on Monday, May 10, 2021. Virgin Galactic will now host a conference call to discuss the results and provide a business update that day to 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The Company is rescheduling its reporting due to the recent statement issued by the [SEC] at April 12, 2021 relating to the accounting treatment of warrants issued by special purpose acquisition companies (the âSEC Statementâ). “The press release further stated that” following its review of the SEC Statement and consultation with its advisers, the Company will restate its consolidated financial statements included in its annual report on Form 10-K for the fiscal year ended December 31, 2020. The restatement is due solely to the accounting treatment of the Social Capital Hedosophia Holdings Corp. warrants. that were outstanding at the time of the Company’s business combination on October 25, 2019. The Company expects to file the restated financial statements prior to the new conference call date and believes that it will record additional non-operating and non-cash charges for each of the fiscal years ended. December 31, 2020 and the 31st of December, 2019. ”
Hearing this, the Virgin Galactic share price has plummeted $ 2.01 per share, or 9.07%, to close at $ 20.14 per share on May 3, 2021.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading companies in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous indemnities of several million dollars on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP